American Airlines is investing another $125 million into redeveloping a terminal at John F. Kennedy International Airport, one of the most competitive airports for the Fort Worth-based carrier’s operations.
It shores up a key connecting point for American Airlines’ international traffic, the eighth busiest airport in the carrier’s network and the fifth busiest for foreign flights. American flies to more than two dozen international locations from JFK, while nearby LaGuardia is bigger for domestic routes.
In partnership with the Port Authority of New York and New Jersey and developer Unibail-Rodamco-Westfield Airports, the carrier will spend the money renovating and updating the airport’s Terminal 8 with a new Great Hall and over 60 new retail and restaurant options.
“We look forward to working with our project partners, the Port Authority and the local community to deliver a transformative dining and shopping experience that represents the dynamic New York region,” said Amanda Zhang, vice president of airport affairs and facilities at American Airlines, in a release.
The project will expand the terminal’s concessions program, creating 300 new concessions jobs in the terminal. American employs over 8,000 workers between JFK Airport and LaGuardia Airport.
In 2019, officials announced American Airlines and its trans-Atlantic business partner, British Airways, would share the terminal space at JFK Airport. The airlines billed it as a way to enhance service between New York and London. Last year, the two airlines completed $400 million in renovations. Within the past year, British Airways, Iberia and Japan Airlines have relocated operations and Qantas returned its service to the terminal.
This year, American will operate 35,694 flights out of JFK Airport, according to Cirium data. In 2022, American carried more than 15 million passengers through New York City.
“Visitors from around the world will get their first taste of what our region has to offer as soon as they step into JFK’s Terminal 8, which, like all of our new airport terminals, will feature a wide range of local dining and shops,” said Kevin O’Toole, Port Authority chairman in a release. “Local businesses help us create a sense of place unique to the region.”
American’s presence on the East Coast has recently been in upheaval during the dissolution of its partnership with JetBlue. In May, a federal judge agreed with government regulators that the Northeast Alliance between the two carriers violated antitrust law by reducing competition and leading to fare hikes. Last week, JetBlue said it wouldn’t appeal a federal court’s ruling that struck down a long-term partnership, while American still plans to. East Coast airports including New York and Boston are areas where carriers fiercely fight over space in crowded markets.
During the U.S. government’s antitrust trial, Vasu Raja, chief commercial officer at American Airlines, said the company was forced to make concessions at JFK in 2019 after it was discovered that the Fort Worth-based airline was underutilizing slots at the New York airport.
